Embraer S.A. ($FIA1S)

Good afternoon, everyone. My name is Emilia Rannanniemi. I'm from Finnair Investor Relations, and I want to welcome you all to this fleet renewal update by Finnair fleet renewal update. I'm joined here today by CEO, Turkka Kuusisto; and CFO, Pia Aaltonen-Forsell. And they will first start by giving a presentation on the news that were announced today. After that, we will have a Q&A session where also Chief Revenue Officer, Christine Rovelli, will be present. You can ask questions by either dialing into the conference call or via the chat function in the webinar platform. With these words, I hand over you to you, Turkka.

Thank you, Emilia, and very -- good afternoon, and thank you for joining us with such a short notice. But for us at Finnair, this is a very exciting day. We are finally in the position of sharing the news about our partial narrow-body renewable program. It has been a project that we've run over the past 18 months. And today, I'm actually super happy when it comes to the outcome of this very diligent, very thorough process that we have run over the past months. And I also pretty much also very proud of the team because it hasn't been easy to run such a project, given that it still the very persistent supply chain issues that our industry have faced. But today, we have announced that we have signed a purchase agreement with Embraer on 18 firm orders for E195 E2 Aircraft with additional 16 options and well purchase rights. And this forms the renewal of our regional fleet when it comes to our future development. Parallel, we have today also communicated our intention to acquire up to 12 Airbus 320, 321 CEOs from the used aircraft market to replace our retiring 390s and 320 aircraft at the mainline side. And these actions is a perfect optimal combination in my opinion, when it comes to support the strategy and execute on it based on the financial ambition level and the strategic priorities that we communicated with the external stakeholders in connection with the capital markets update, November 2025. So as said, this is an optimal solution to balance the growth and profitability, and we will allocate these E2 aircraft to our Nora platform, and we will then replace the least capacity and older aircraft once we start to get these new aircraft in during the second half of 2027. When it comes to options and purchase rights, the potential use will be then decided at a later stage. And as already mentioned, the incoming secondhand 320s and 321 CEOs will be replacing the retiring 390s and 320s of the Finnair fleet. And this particular aircraft type have been the ones whose average lifetime is already beyond 23 years. So therefore, this replacement by secondhand CEOs will provide us with a perfect bridge solution when it comes to the capacity replacement and CapEx capacity increase during this decade. And then going back to the capital markets update that we held mid-November last year, this was the one pager when it comes to our strategy for customers in the spotlight and then the flywheel around it. And this investment scheme is a pivotal element when it comes to the convenience sector and then providing our customers a network that they really appreciate and want to fly. And then speaking of the investment. In the current world order, we have emphasized the role and importance of the regional network. And this investment genuinely fuels a stronger regional network to all of our customers but more specifically for the core customers. And at the same time, it enables us to execute on the increased profitability target level and also secure the competitiveness of thinner network and flights and also the cost competitiveness that is actually extremely important perspective when it comes to taking this company to the next chapter. At the same time, the E2 will also enable upgraded customer experience when it comes to the Embraer fleet that is operated by Nora. And then finally, the next-generation aircraft and mainly the engines are also supporting very positively when it comes to meeting our climate targets. And there, it is extremely beautiful aircraft with Finnair livery. So, these beauties will start to arrive at Helsinki housing base during the second half of 2027. A few additional remarks related to the network communicated in the capital markets update, we intend to capture our share of the market growth, 4% CAGR during this decade. And again, these investments enable us to do. So we continue to further develop the regional network to serve our core customers and open new destinations only for 2026, we have introduced 14 new destinations, both in Europe and also in some long-haul destinations. With such an aircraft type and combination, we are also in a very good position when it comes to agility. Additional frequencies to our current destinations to really benefit from the passenger flows and the increasing demand. And that is hugely important from the network carrier strategy point of view because with this more wide and more frequent regional operation, we can then more beneficially fill our widebody aircraft towards Asia and also North America. And then, of course, allocating the right size aircraft to each route is in the very heart of profitable airline business and operations. And on the right-hand side, you can see an illustrative slide chart which is extremely important to highlight that the E2 aircraft or generation is much more capable from the range point of view. Up to 2,600 nautical miles, which translates into close to 5,000 kilometers. So E2 can actually serve the Iberian Peninsula from Helsinki. So therefore, we are also capable of covering Spain, Italy and Northern Mediterranean with the selected aircraft type. And then speaking of the aircraft, E2, we've selected a 134-seat seater in 2-plus-2 configuration. The seat will be between 29 to 30 inches, which is pretty much equivalent that we have currently in our narrow-body fleet. All seats will have a reclining -- recline functionality for additional comfort and all the seats will be equipped with high power USB charging in each seat. And then finally, all new aircraft will also provide the customers with high-speed Internet connectivity. We have decided to install the third lavatory for minimal queuing time on board, again, putting customers preferences and customer experience on the spotlight of the development. And then, of course, the cabin design will reflect our brand and the business of Finnishness as we have started to cascade in our brand management and thinking. And then finally, when it comes to fuel efficiency and also CO2 reduction, which is, of course, a very important topic also in our industry. The E2s are powered by Pratt & Whitney BW1900G engines that provides us with over 30% reduction in CO2 emissions per seat versus the current generation E190E1s. And then in addition to CO2 reduction, this is one of the most quiet planes when it comes to our single-aisle aircraft globally. And that is, of course, both from the customer experience point of view, but also from the kind of a sound pollution point of view, something that we really appreciate. Our agreement with Pratt & Whitney includes also some spare engines as well as maintenance agreement and then we will receive the latest hardware available for this engine type. Maybe I would finish my presentation on my section by recapping the financial targets that we launched in connection with the capital markets update, November 2025 capturing the market growth with the same pace with the market growth, plus 4% CAGR and then comparable EBIT range from 6% to 8% and then the investment range that we communicated from EUR 2 billion to EUR 2.5 billion, but Pia will actually comment this KPI when she will start her section. But given all this, and given what I just mentioned when it comes to this investment scheme that is supporting extremely well what we are also kind of aiming achieving from the financial targets and performance point of view. But maybe with this first, I would leave it for Pia to discuss a bit of the details.

Thank you, Turkka. And dear, ladies and gentlemen, my name is Pia Aaltonen-Forsell. I'm CFO at Finnair since August of last year. So obviously, the work to conclude this big project has started long before I was here, but I have certainly seen what an important part of our strategic journey this is. And thank you, Turkka, for also putting this in the perspective of our strategy and the CMD and what we have presented in November of last year. So I would like to focus briefly on three things: The first one is putting this news into the perspective of our current fleet; the second one is discussing our readiness from a balance sheet perspective, from a funding perspective; and thirdly, just a brief recap on the time schedule, especially on the Embraer deliveries and then some comments on the cash flows there. So with that in mind, I'll start first with recap. This data was also referred to in our CMD. And what I'm discussing here is our current fleet. So obviously, I kind of start at the bottom of the page right now because I do want to point out first that this agreement on the Embraer on the E2 certainly gives us that opportunity to grow our regional network in a very profitable way. So you can see here the current fleet of the 12 Embraers. Now we are also growing that on the Nora platform up to 18. So this is sort of a good and sound and very balanced way for us to add also to that feeder traffic to our long haul. So obviously, sort of a good first checkpoint. Then in conjunction with the narrow-body renewal, we have discussed the detail that you can see here in that section for the narrow-body, which says that especially when it comes to the Airbus 319 and 320 of our current fleet, we do have the aging fleet as an issue that we need to address. And with the announcement that we did today about acquiring or starting to negotiate about acquiring up to 12 used Airbus 320 or 321 conventional engine options. This certainly for us, is a very cost-efficient way of replacing that aging part of the fleet. And I also, of course, want to give some credit to the fact that our fleet team is working so diligently. I mean the market situation is very dynamic and where we see it today, we see that we are in a position to start such negotiations. Then finally, on the widebody. Obviously, this is the crown jewel also of our fleet today. We still have one Airbus 350 that is coming in from that campaign that was started more than a decade ago. So I think we are sort of well set up there. There's one more detail. You may recall also from our announcements in the autumn that we talked about midterm capacity, and we may still consider adding some used aircraft such as E1s or ATRs to our fleet here, especially here on the regional side because we do need to bridge these different steps. So that's still on our agenda, just as announced before. And I think this sort of complete picture here shows our also agility and flexibility and ability to react to different market situations and choose what is optimal for Finnair and our strategy. So then the question is kind of how have we prepared for this from the funding and the balance sheet perspective. So let me first start by just showing sort of the longer-term development of our leverage. you can see that we have reached again after, of course, the double crisis and many, many actions that were taken in conjunction with that. Where we stand today is, sort of, again on firm ground we have been able to get our leverage at the year-end. It was 1.8x. It means we are already within the boundaries of our financial targets. We have a good credit rating BB+ with a stable outlook. And obviously, as well, we have restored an ability for shareholder distributions as also announced in our Q4 results. So I think sort of here, here we have set the basis. We have the CLAs in place as we speak. So the starting point is good. On the next page here, I would particularly focus on the cash flow development that you can see on the graph on the right-hand side. And I think that ability to generate on a normalized basis, a cash flow at operating cash flow of around or above EUR 500 million per year. That's obviously a cornerstone as well in how we think about the funding of these fleet investments. And you can see that even in a year such as 2025, which started off on a more difficult foot where we also had some conflicts and in the end, had a very strong end to the year, but a difficult beginning of the year. There, you can also see that our cash flow remained above EUR 400 million mark. So I think, let's say, holistically, this track record and history shows that our ability to generate the cash for funding this is already on a strong footing. I want to briefly comment also on the recent situation with the war in Iran and obviously, the extremely turbulent situation also when it comes to our main cost item, jet fuel, and this is a very serious situation that sort of impacts everyone in the world as we stand and, of course, as well Aviation. From a short-term perspective, I think we have shared in the public as well that our hedging situation according to our policy, I would say, this is giving us some protection in the short term. And obviously, for the longer term, we have a number of responses in place. Maybe happy to discuss them at a later point in more detail. But I think nonetheless, we are now talking about sort of setting here some important cornerstones for Finnair's long-term development. And with the current cash flow with the current balance sheet, and with as well, I would say, a broad range of tools available for us in terms of funding, we feel confident to make this decision. Maybe a final point on funding is that when we are looking at the current debt instruments that we have out there, we have the bond of EUR 500 million maturing in 2029, the one of EUR 300 million in 2030. So I mean, I think we have made sort of good preparations and have a good readiness for this decision. So then on to my final point. it's actually a very easy timing sort of time line here, Turkka has already discussed. The key topic, which is that Q3, Q4 '27, we will get the first three deliveries here, which we are, of course, eagerly waiting for right now. But I wanted to give a few sort of initial points on the timing of the cash flows. So first of all, now as we have reached this point of agreement, there are some initial cash outs that we would expect during this year. And I think when we have earlier announced that our CapEx of this year would maybe be around, let's call it, EUR 450 million, then maybe about 10% of that we will now allocate into the prepayments or sort of signing related and other payments that would occur during this year. Then we will, of course, have outgoing cash flows on a rolling basis as we get the aircraft into our fleet. So you can see that this, of course, campaign in its entirety would extend well beyond our current strategy period until 2029. But if we look at sort of what we could expect in terms of what we now have in firm orders and then some fees relating to options and purchase rights and other topics. I would say probably we would use more than 50% of this full amount that has now been committed by the end of 2029. But we can come back with some more exact data once we have still sort of also confirmed the other parts that we have announced today. So from where I stand today and from what we know today, I think that within this CapEx guidance that we gave for the full strategy period. So until end of 2029, we said that it would be between EUR 2 billion and EUR 2.5 billion. I think now we are sort of going towards the lower end of that. And once we have also then concluded on acquiring these used aircraft, then we are in a position to give an even more sort of firm figure because this, what we have announced today is also what is sort of concluding those major points, those major steps that we need to take within this strategy period to sort of fulfill the needs that we have within these years. But with that said, I would complete my presentation. And Emilia, I would hand back to you.

Thank you, Turkka. Thank you, Peer. I'm sure the audience has some questions. Now is a good time to ask. You can either do so by following the instructions or using the chat function. And welcome Christine on stage as well.

[Operator Instructions]. The next question comes from Joonas Ilvonen from Evli.

Hi, Joonas Ilvonen from Evli. So your current naval fleet consists of 53 planes for a total of about 7,400 seats. And now if you were to exercise this investment program in full, you would acquire 58 planes for a total of about 8 -- more than 8,000 seats. So this is not just a renewable investment, it is a growth in investment also to some extent. And so I was wondering about some of your current Airbus A321 because it seems that some of those are not that old as the average is only about 11.5 years. So any comments on those? Are you going to replace them as well or...

Sure. Joonas, I'll take that one. Well, it's important to look at the order as we've structured it. So we have the firm order and then we have the options and the purchase rights. It sounds like you have included both the options on the purchase rights in your seat count totally, and there's a reason why those aren't firm orders because we haven't made a decision yet. As you know, the market is quite volatile these days. So we want to make sure that we have the ability, if we need to, to expand a bit if the market allows, but we also want to make sure that we have the retirements of the A320 fleet covered in the A319 fleet, which is what Turkka alluded to before. So the A321 fleet is not a fleet that we're looking at the moment with this process. Because as you point out, they are not ready for that yet.

Okay. So initially, it's just a renewal investment. And then maybe at some point, it might go out to be a growth investment in the coming years, maybe?

We're keeping that option open, yes.

Okay. That's clear. Then about the price of these new Embraers. I think as you mentioned that you said that the list price for this roughly like $90 million. Any comments on discounts? Like I think I saw somewhere that it's like up to 50% -- you can get up to 50% discount on these listing prices? Any comments on that?

Yes. So I can't comment on the exact price that we've paid for obvious reasons. I would say that there's a reason that the discount levels out there in the market are floating out there. So if you need something for your model, that's probably not a bad place to start, but I cannot comment on the price that we've paid.

Okay. What about this Airbus A320, 321 CEOs, you planned by use. I mean what kind of a -- any comments on that used price like $25 million per piece? Would you looking at something like that?

Yes, that's super -- the market is very varied right now. It depends on the carrier. Those aircraft are coming out of. So there are some vintage aircraft that we're looking at that might hit somewhere in there, but then there are also new aircraft coming out of a flight carrier, for example, that might be more expensive. We really don't know until we issue the RFP and get the bids back. So again, it will really depend on what we see when we get the RFP back.

My final question. Any comments on this. I think you earlier said that you plan to own most of these new claims, but you might also leave some of them well. So any comments on that at that you might be looking at?

Well, that's partially my question, partially Pia's question. So I will say that we will source the aircraft, and then I will let Pia answer the other comment.

Yes. Thank you, Christine. I mean, Joonas, if we look at our structure today, obviously, sort of from a value perspective, I think we are already a bit more than half, sort of, kind of, firmly in our own balance sheet. But I think sort of from where we stand today, it's still -- we will still face this question multiple times once we actually get the deliveries into our fleet. And I think at that point, we will always then take an informed decision, balancing kind of the availability of the funding, the price of the funding and all of that because we have those tools. But if you would ask for a preference, then I think we see value in also having fleet in our own balance sheet, and that gives some sort of -- some more flexibility but we would certainly not take that decision too early. We would take it at that point and with sort of all the right information being available then.

The next question comes from Victoria Moores from Air Transport World, ATW. Please go ahead.

Good afternoon, and thank you for -- congratulations on finalizing the order. My questions are uust two. One is you mentioned that this was the perfect bridge solution. And I'm wondering, I think that, that was in relation to the A320 CEO. So could you explain kind of what the further plans are beyond the bridge as it were? And then my second question, you mentioned that there's potential to take some interim aircraft, so E1s and ATRs before the new aircraft start delivering. Can you provide any color or detail on that, please?

Sure. So I'll start with your last question. First, we have already issued an RFP in the market for the E1s and the ATRs. So we are actively sourcing those now. That's with a view to getting some of them in the fleet as early as 2026. As Turkka mentioned, we will not be taking the aircraft from the Embraer order until the third quarter of 2027. So that -- the ATRs and the Embraers are the reason why we're looking to source those a little bit earlier. With respect to the bridging solution, you probably know, if you follow the industry that both of the OEMs right now don't have delivery positions for the larger narrow-bodies, the MAXs and the Airbus Neos until probably 2022 -- or 2032 or 2033. That doesn't coincide very well with the retirement age of our current narrowbody fleet, which starts in 2027. We have done on ESG kit already on the A320 fleet. So we would like to be able to retire those aircraft when the ESG kit is finished, which is going to get, as I said, 2027, 2028, and that leaves us a gap. So that's the bridge that we are looking to create with the CEOs that we've announced today.

Okay. And may I just come in with a clarification on both those points. So one clarification was how many aircraft is the RFP for on the E1s and the ATRs. And then the second part is or the RFP on the A320, A321 CEOs, when are you anticipating that, that will be issued.

Well, again, taking the second question first. It will be imminently. We're in the process of preparing that now. So I can't say -- give you an exact date, but it will be quite soon. And for the second question, at the moment, we are out in the market looking for, I think it's 4 ATRs or 6 ATRs and Embraers.

The next question comes from Kaisa Vanha-Perttula from Inderes.

Good afternoon as well. This is Kaisa Vanha-Perttula from Inderes. So I have a few questions. So firstly, regarding on the E2 fleet. So when these aircraft come into service, is the primary objective to grow passenger volumes or to optimize the existing network? And also, how should we think about this in relation to the phaseout of the current A319 and A320 fleet?

I'll take that one. So I'll just start by giving a bit of background. We have the fleet currently in terms of number engaged that we had when the Russian air space was open. That network obviously has changed quite a bit. We've repositioned it and rebalanced it somewhat. So the gauges in the numbers of aircraft that we need are different. So it's not as simple as doing a one-for-one replacement of four, for example, in A319 or growing the regional fleet. What we've looked to do is reorient the network. In terms of the home market, the Nordic market that we are serving, which by definition, has smaller destinations that are better suited to a smaller gauge of aircraft.

All right. And then as a follow-up then, on which routes or markets do you expect like this E2 to deliver the most meaningful improvement in profitability compared to the current fleet?

Well, that's not something I can disclose at the moment, but I think Turkka showed you a representative math of where we would look to deploy those aircraft.

Okay. And maybe lastly regarding on the potential acquisition of the used A320 and 321 CEO aircraft. So I mean, you already commented a little bit, I'm just asking a little bit color on how good visibility do you currently have on their availability? And can you comment any way that what kind of age profile are you targeting?

Sure. Well, our team looks after the used market for aircraft fairly consistently. So we've been tracking the market for quite a while, and we've been pretty pleased with the developments that we've seen in it recently in terms of availability and pricing. So I would definitely say that that's a very positive signal for us. And that's one of the reasons why we decided to make this move now. And second, in terms of vintage, it's always a question in terms of how the aircraft is already configured versus how old it is. So I can't give any strong guidance there, but of course, we would look to secure the best aircraft we can for the network that we have.

[Operator Instructions]. The next question comes from Pasi Vaisanen from Nordea.

This is Pasi from Nordea. Two questions from my side. And the first one is related to yield for invested capital. So what is the figure you have actually used to make this investment decision in terms of yield for invested capital? And secondly, when looking at your current fleet and this new prior plan. So what is the unit cost difference if you fly Spain with all Airbus compared to the new Embraer. So is there any difference in the unit cost? And can it be kind of offset by the changes in the unit-driven side then?

Thanks, Pasi. I think first of all, when you are looking for the yield to invested capital in the network setting, I think that sort of -- we need to look at the totality of how we can grow our network, how we can maintain our network. And maybe the calculation in its entirety is not something we would show here or share here publicly. But obviously, we are looking at typical measurements, payback calculations, IRR, et cetera, but you need to put that into perspective of us kind of continuing to run and benefit from our full network. So this, for example, improvements in regional network are extremely important for also keeping our long-haul network current. Then into your question of the unit cost differences. I think what we have shared today is that there is a big potential when it comes to fuel efficiency, of course, that goes hand-in-hand with CO2. CO2 also has cost. So I guess all of that we could be looking at and giving a figure. But if I remind you of where we set our strategic targets, so the strategic target of a EUR 100 million improvement by the end of 2029. We said that only a very small portion of that actually comes out of sort of cost improvement. Most of it was revenue related to modern retailing as well as the loyalty. So I think what we are doing here is more sort of preparing the ground having the setup where we can then also continue to grow the business and through that, also ensure our profitability. And we do also get more costs, obviously, for a newer fleet. And there's a number of things sort of surrounding that. So in terms of the financial targets that we set, we haven't put in a big upside based on the difference in the cost for example, in flying to Spain with the two different types.

Excellent. Excellent. I understand. So just to kind of clarify, part of the investment is then paid by selling to kind of long-haul tickets to your 350 planes and that actually gives also the yield on a group level then for this investment.

I mean it's -- we are constantly optimizing for our full network. So yes.

The next question comes from Jaakko Tyrvainen from SEB.

Jaakko here, from SEB. On the 320s and 321, sorry, if I'm a bit repeating here, but did you say anything about the kind of a realistic time line for that purchase decision and negotiations, how fast you can consider to get those aircraft? Do we have to look at '27 or until '28.

So the aircraft that we would hope to be replacing with those aircraft retiring from the fleet in 2027. So that's when we would hope to start in-fleeting them. But of course, it's going to depend on the market conditions, how fast we can actually source and negotiate those transactions.

Then we have some questions in the chat as well. Let's start by one by Antti-Pekka Viljakainen. Do you need to negotiate with unions to execute this fleet plan in Finnair and/or in Nora?

No, we don't because the latest CLA that was agreed with the Finish Pilot Union in 2025 actually increased the number of jets that we can operate on the Nora platform. Previously, they were limited to 12%, but now the new CLA actually enables us to place a jets, i.e., now these new E2s on Nora platform. So from the CLA point of view, this is already kind of covered.

Then on engine-related questions by Andrew Lobbenberg. Any concerns about the reliability of the GTF engine. Clearly, E2 GTH has less troublesome than A320 family, but still not perfect.

Thanks, Andrew. So we had a lot of discussions with Pratt & Whitney, as you might imagine, throughout this process to get comfortable with where the build of the engine is currently and where they expect it to be by the time we take delivery of our aircraft in Q3 2027. So as you may know, they have been pretty public about the fact that the GTF advantage and the HPT will be installed on the engine latest Q3 2027. And so with that information and the understanding of what that actually means for the engine build itself, we felt comfortable moving forward with deliveries at that time.

And then some further questions by Andrew, how confident are you in being able to source used CEOs at reasonable prices? I think you touched upon this one already, but then continuing any preference for engines on used aircraft. Will you consider leases or you want to buy this?

Okay. So again, I'll answer the first two. I'll leave the last one to Pia. The first question, of course, was we do monitor the market consistently. And as I mentioned before, we've noticed over the last few months or so that the market has gotten much better for acquirers, it that way. So that's why we felt comfortable making this move now. With respect to engines, we actually currently operate both of the engine types that you would expect to find on a NEO. We have the V2500s as well as the CFM. So we don't have any view on that at the moment. And as for the ownership profile, again, I will look to Pia to...

Thank you, Christine. Thank you, Andrew. I think just maybe repeating myself also from the CMD, but I still think we stand firmly sort of on the base idea that we have a cash flow and a balance sheet that would also support acquiring new assets to our balance sheet. But nonetheless, we will assess the opportunity also what's available also in terms of leases, maybe also in terms of some other instruments individually when we actually are at the point of delivery. So depending on the market conditions then, and if it's sort of any guidance then currently and from where we stand today we have more than 50% of the value of our assets in our own balance sheet.

Then let's move on to other questions in the chat. Did you evaluate A320 Neo family or Boeing 737 MAX aircraft for the fleet replacement and if applicable, why did you decide not to acquire new generation narrow bodies?

So if I can just clarify whoever sent that, you're talking, did we look at those aircraft instead of the E2 or instead of the CEOs? If I can just proactively answer the question, as I understand it, those are much larger aircraft than the E2. The E2 is better served that are suited to the smaller markets that we want to be able to expand into in order to feed our network. And then when we're looking at the CEOs versus placing a new order, I think I addressed this to some extent earlier, the availability just doesn't line up with what we would need for replacement for our current seal fleet, at least for the first -- the A319 and A320 the A321s, as we mentioned before, are younger.

And then the next question. Hello, Finnair is close to complete the revamping the cabin of its 12 Embraer fleet aligning with its stronghold design, but will Finnair sell its E1 fleet and when?

Well, we don't really have any plans at the moment to dispose of that fleet. We are going to be transitioning out of them as the new aircraft deliver. So the investment that we made in the interior will continue to pay us dividends until those aircraft are retired.

The next question, how does Finnair intend to remain competitive with the E195-E2 and its business class product. No free middle feed on medium-haul fleets.

Well, we're still working to refine the service concept there. So I would say in addition to the benefits that Turkka mentioned, which is first-generation WiFi and instant power and things like that, we are also looking at the other things that we will be providing to our premium passengers onboard that aircraft. So stay tuned.

And then another question from Andrew. I'm guessing you run the A220 against the E2. Anything to share on why the E2 wins out on the A220?

We wanted to make the best decision we could for the network that we operate. The A220 has a longer range, it carries more people. But the question was, was that something that was best used to our network or not. And at the end of the day, looking at those two aircraft together, we really felt like the E2 is the best decision.

Then are they used ATR, you are looking for going to be 500 or newer 600s?

We're looking at both types.

Thank you. Are there any questions on the phone lines? No. I suppose, that was it. No other questions. Thank you all for joining. And if you have any further questions, do reach out, and we'll be happy to answer those. And thank you, everyone, and have a nice day.

Thank you so much, and see you on board Finnair.

S Thank you.

Thank you.